This morning Twitter (TWTR) released a new job posting for an internal team codenamed “Gryphon.” In the job listing, the company noted that they were working to build a subscription-based platform. TWTR stock soared on the news. The company has since removed this wording from the job listing. At 3:30 PM ET, TWTR is still up almost 7% on the day. Let’s review the weekly cycle analysis.
Twitter (TWTR) Weekly Chart – annotations by askSlim.com
At askSlim.com we use technical analysis to evaluate price charts of stocks, futures, and ETF’s. We use a combination of cycle, trend and momentum chart studies, on multiple timeframes, to present a “sum of the evidence” directional outlook in time and price.
askSlim.com Technical Briefing: This news could not have come at a better time according to our analysis. The weekly cycle analysis suggested that TWTR was due to form an intermediate-term low. The projected low is due to form between early July and early August. TWTR’s weekly momentum has now turned positive.
On the upside, there is a resistance zone from 39.64 – 40.32. On the downside, the stock has rising intermediate-term supports from 30.47 – 28.47. For the bears to regain control of the intermediate-term, we would need to see the stock trade below the cycle low support at 28.23.
askSlim.com Sum of the Evidence: TWTR is in a very bullish weekly cycle pattern with positive momentum. Given these conditions, there is a likelihood that the stock retests the prior swing highs around $40 by late-fall of this year.
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